Spot gold extended losses, slipping below $4,370/oz and down 0.46% intraday.

Iranian political analyst Hussein Ruivalan said the outcome of the Strait of Hormuz standoff will depend on which side can endure longer, framing it as a contest between closing the strait and blockading Iran. He said the US is feeling the pain of higher oil prices, rising inflation and living costs, which has reduced domestic appetite for war, while Iranians view the conflict as an imposed defensive action and can tolerate it longer. Ruivalan warned a protracted conflict could have domestic political costs for the US president and Republicans if no solution is found. He denied US reports of Iranian supply shortages, saying Caspian ports are meeting domestic demand, and argued Iran’s roughly 7,000 km land borders and 3,000 km coastline make a true blockade infeasible.

Last week's mixed July jobs report raised the market importance of July inf, analysts say. LPL Financial chief economist Jeffrey Roach said the Fed's rate path will depend on how long inf stays elevated; with the labor market cooling, inf could become the swing factor. A less certain inf outlook could support one hike this year but makes multiple hikes unlikely. Vanguard analyst Hicklin said July payrolls plus expected inf improvement bolster the case for the Fed to leave rates unchanged through year-end. Recent data have shifted Fed focus toward balancing labor-market signals and inf, increasing confidence policymakers will hold rates this year.